Understanding Non-Discretionary Mutual Fund Advisory Programs

A non-discretionary mutual fund advisory program can provide you with a solid way to invest. Here are the basics of the non-discretionary mutual fund advisory program.

Non-Discretionary Mutual Fund Advisory Program

This type of program is a way for investors to take advantage of professional money management. However, with this program you will not have to have as much money to invest as a typical hedge fund would require. You can get involved with a mutual fund advisory program for around $25,000 in most cases.

With this type of program, you are going to be working closely with a financial advisor. You will sit down with her and look at a number of mutual funds that have been pre-approved for the program. You will look at all the different features that the mutual funds have to offer and choose the funds that you want. This will help you create an asset allocation model that you are comfortable with.

Investor Approval

With this type of advisory program, you will have to sign off on any changes that are made to your account. For example, if your advisor believe that you should rebalance your portfolio, you will have to approve the process. You will also be in charge of choosing which mutual funds to change if needed.